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  • Writer's pictureAlan Smith

VAT Bridging loans demystified

VAT bridging loans on commercial properties are a relatively new product on the market. As with all new products to market, there is an educational role to play, helping potential users understand why the product is beneficial, how it works and what is involved in applying for a loan.

Over the last year we have attended many round tables, speaking events and conferences and there is no real substitute for being able to explain the product in person. However, we are realists and know that face to face meetings are not going to be possible in all situations.

We have therefore developed an FAQ (Frequently Asked Questions) piece now available on our website. As the title suggests, the FAQ is based on the questions that we are most frequently asked when meeting people at industry events. Having spent the last 6 months out and about we have a good understanding of what most people want to know. Our FAQ has been developed accordingly.

Typical questions we are asked include:

• I am at the maximum loan to value (LTV), can I still take a loan to bridge the VAT?

• Do I have to chase HMRC for the recovery?

• I already have the money set aside for the VAT, why should I bridge instead?

To see the answers to these and the other questions, please click here.

For further information on how Bridging Vat can help fund your next commercial property purchase, please contact us on email at or by telephone on

01206 645 050.


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